What Happiness Research Can Tell Us about Self-control Problems and Utility Misprediction
نویسندگان
چکیده
Neoclassical economic theory rules out systematic errors in consumption choice. According to the basic view, individuals know what they choose. They are able to predict how much utility an activity or a good produces for them now and in the future and they can maximize their utility. This implies that behavior reveals consistent preferences. This approach makes it impossible to detect and understand sub-optimal consumption decisions, due to problems of self-control and the misprediction of utility. We propose the economics of happiness as a methodological approach to study these phenomena. Based on proxy measures for experienced utility, it is, in principle, possible to directly address whether some observed behavior is sub-optimal and is therefore reducing a person’s well-being. We discuss recent evidence on smoking and eating habits, TV viewing and commuting choice. JEL Classification: D00, D11, D12, D84, D91, I12, I31
منابع مشابه
What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel
Much progress has been made in recent years on developing and applying a direct measure of utility using survey questions on subjective well-being. In this paper we explore whether this new type of measurement can be fruitfully applied to the study of interdependent utility in general, and altruism between parents and children in particular. We introduce an appropriate econometric methodology a...
متن کاملDoes Happiness Differ across Cultures?
This book deals with a classic question in the study of happiness: Is happiness similar for all humans, or is it something that varies across cultures? In the universalistic view, happiness is comparable to pain. All humans know what pain is, will experience pain when touching a hot stove, and tend to avoid pain. In the cultural view, happiness is more comparable to beauty, the idea of which va...
متن کاملUsing science and psychology to improve the dissemination and evaluation of scientific work
Here I outline some of what science can tell us about the problems in psychological publishing and how to best address those problems. First, the motivation behind questionable research practices is examined (the desire to get ahead or, at least, not fall behind). Next, behavior modification strategies are discussed, pointing out that reward works better than punishment. Humans are utility seek...
متن کاملExplaining happiness.
What do social survey data tell us about the determinants of happiness? First, that the psychologists' setpoint model is questionable. Life events in the nonpecuniary domain, such as marriage, divorce, and serious disability, have a lasting effect on happiness, and do not simply deflect the average person temporarily above or below a setpoint given by genetics and personality. Second, mainstrea...
متن کاملWhat do happiness and health satisfaction data tell us about relative risk aversion?
In this paper we provide estimates of the coefficient of relative risk aversion using information on selfreports of subjective personal well-being from three datasets: the Gallup World Poll, the European Social Survey, and the World Values Survey. We additionally consider the implications of allowing for health state dependence in the utility function on estimates of risk aversion and examine h...
متن کامل